The NHS faces "complete financial collapse" in less than five years, it was claimed yesterday after a damning report into the financial health of the service.

A desperate lack of funds which is now directly impacting on services and patient care has left the health service “not sustainable”, the Government’s own auditors warn today.

Labour's Frank Field called for an extra penny to be added to National Insurance contributions to pay for the shortfall.

He said: "Britain’s health and social care services are staring into the abyss. The path they are on now leads only to a complete financial collapse by 2020.

“An immediate penny increase in National Insurance contributions – a move which goes with the grain of voters’ wishes – would see the NHS through this five-year period of intensive care.”

The damning report by the National Audit Office (NAO) said more than two-thirds of NHS trusts overspent last year with a combined deficits of almost £2.5billion - up 1285% on 2014/15.

The report shows panicking officials at the Department of Health have been forced to prop up trusts with huge loans and by plugging holes in day-to-day spending with almost £1billion earmarked for capital investment in new hospitals and equipment.

And the auditors are clear there is now a dangerous knock-on effect for paitent care.

“There are indications that financial stress is having an impact on access to services and quality of care,” the report warns.

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“Trusts’ performance against important NHS access targets has worsened.”

The damning verdict comes just a day after the Mirror revealed how local NHS bosses are drawing up secret plans for £22billion of cuts that will include hosptial closures and the scaling back of A&E departments and maternity wards.

“They are very clear that it is this Government’s ‘aggressive efficiency targets’ which have contributed to the disastrous deficits in the NHS, and that the current financial trends are just not sustainable. “The Government cannot turn away from the situation any longer.”

Lib Dem health spokesman Norman Lamb added: “This report is a nail in the coffin for the Government’s claims to be adequately funding the NHS.

“Fresh thinking about the scale of the financial crisis is needed if we are to avert a total catastrophe.”

But the DoH insisted it is already pouring extra cash into the NHS to deal with the financial pressures.

A spokesperson said: “We know finances are challenging for some parts of the NHS, which is why we have a strong plan to get back on track.

“We are already seeing progress, with 40 fewer trusts in deficit compared to this time last year.

“We are also investing an extra £4 billion in the NHS this year to transform services and improve standards of care, which will rise to an extra £10 billion per year by 2020/21.”